Run-off your feet

Excerpt from CIT Interview: Andrew Rothseid of RunOff Re.Solve says a perfect storm is brewing in a global run-off market that continues to expand and evolve.

How big is the current run-off market in the US? And do you expect the market to increase?

When commentators reference the ‘size’ of a run-off market, the term ‘size’ generally refers to the amount of liabilities that are in run-off. To use a phrase that has become all too popular in this US election season—it is huge.

The size of the US non-life run-off market has never been determined. In the mid-1990s, a study conducted by Swiss Re estimated the size of the US run-off market to be between $150 million and $200 million.

However, with more than 400 entities in solvent run-off and a similar number in insolvency, it is difficult to put any precise number on the size of US non-life run-off. Many insolvent entities do not issue reports on their financial condition. Similarly, many captive insurers and reinsurers have liabilities in run-off and there are few, if any, captives that issue publicly available financial statements.